Renovation Loan helps when buying a home in need of repair.
This FHA loan is a good answer when buying a home that needs repairs.
The following article was written by Steve Haney from Keeping Current Matters.
The FHA 203(k) Renovation loan, available as a purchase or refinance, established in 1978 by the US Congress to revitalize our nation’s housing stock was ahead of its time by about 30 years. The authors of this loan program must have seen this housing market coming. The 203(k) allows an owner occupant home buyer to purchase a home in need of repair and get funding not only to purchase it but also to fix it up in one loan. It allows the seller to sell and close a home “As-Is” no matter how bad the condition is. A home could be condemned, it could have a cracked slab or damaged foundation, code violations, fire damaged, leaking roof, or no kitchen. The buyer can close it “As-Is” and include funds to fix up the home in one loan.
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